Tag Archives: multifamily upgrades

Flipping Units for New Tenants

When a tenant moves out of a unit, it’s a good idea to do some renovations to the unit to prepare for new residents. You want new residents to be pleased with the unit when they move in. Many property owners work with a multi-family construction company to handle many aspects of their buildings.

Kitchen-upgrade-tenantYou should thoroughly inspect the unit and make notes about potential improvements. Are there holes or cracks in the walls? Do you see water damage? What kind of condition is the floor in? Is the carpet stained or coming loose? Do the hardwood floors have dents or serious scratches? Often, rental units need a fresh coat of paint to make them look fresh and welcoming. Make note of the obvious problems so you can develop a plan for renovating the unit.

You can ask your multi-family construction company to inspect the unit for problems that aren’t obvious. Some issues affect resident safety such as mold and electrical problems. Other problems aren’t as serious but need to be addressed. These include plumbing problems, outdated appliances and cleaning issues. The multi-family construction company should inspect the health of the HVAC system to make sure it does not need updates or repairs.

When you work with a multi-family construction company over time, you will typically work with the same project manager. This person will get to know your property and your priorities so you plan projects over the long term. You may develop a system for flipping units since most properties have consistent changes in tenants. This can help you get rental units ready quickly. It will also help you develop a budget that you can rely on when an old tenant moves out and you want to prepare the unit for new residents.

Multi-family construction companies specialize in dealing with the issues that multi-family property owners face on daily basis. They can often recommend upgrades and changes that you may not think of on your own. The multi-family construction company’s experience in the industry can help you make the most of your properties so that you attract the kind of tenants that you want in your buildings.

Rehabilitating a Neglected Building

Rehabilitation projects can go on for an extended period of time. To simplify the process, you should work with a commercial construction company that can address multiple issues. Find a partner that has experience with roofing, HVAC, siding, welding, stair building, painting and carpentry. This will make life easier for you because you won’t have to juggle multiple contractors.

neglected-propertyIf the building has been neglected over a long period of time, you should have your commercial construction company evaluate the structure for any storm damage. If repairs aren’t made after damage, they can lead to serious problems. The roofing may be seriously compromised. Bad roofing may not immediately lead to leaks but may suddenly result in drastic problems. Damaged siding will make the building look neglected and can seriously affect energy efficiency. All units should be evaluated for issues like broken plumbing, compromised heating and cooling systems, damaged flooring and leaks. A commercial construction company can also evaluate the units for problems that may be less obvious such as water damage, mold, fire damage and shoddy repairs.

The surrounding parts of the property may need upgrades. Fencing is often neglected by irresponsible property owners. If the property has a clubhouse, it could be out of date and shabby. Clubhouse upgrades can make a significant difference in terms of attracting desirable tenants. Commercial construction companies can help prioritize these repairs and assist you in developing a long-term plan for renovation.

In some cases, your renovations may be eligible for state funding programs or reduced interest loans. Some rehabilitation projects can lead to tax deductions and significant cost savings down the road, especially energy-efficiency upgrades. Commercial construction projects, if performed correctly, can actually save you money in the long run. Commercial construction upgrades will also help you attract desirable and stable tenants. These types of tenants usually won’t consider a neglected property no matter how low the rent is.

When you are rehabilitating a neglected property, consider hiring an exterminator to make a full evaluation of the property. If the property isn’t properly attended to, rodent problems often develop. Cockroach and water bug infestations are also common. You should ask the exterminator to check thoroughly for bedbugs which are a common concern for tenants. The exterminator can correct problems that will seriously upset tenants.

Renovating an Out-of-date Multi-family Property

If you’ve recently purchased an out-of-date property or are planning to renovate a complex you already own, it’s common to feel overwhelmed by multi-family construction project. It’s important to work with a contractor that has expertise in a variety of fields. Multi-family construction renovations involve a range of solutions including painting, electrical work, plumbing, general contracting, roofing and a variety of other types of work.  If you work with a contractor who can provide a variety of services, you’ll find that your renovation projects are more achievable.

When it comes to multi-family construction projects, it’s important to set priorities early. You can work with your contractor to make a long-term plan for improving your multi-family property. This way, you can plan your budget over the long-term to make your goals achievable. Many property owners begin by renovating the exterior of the property because it’s difficult to attract tenants if the property looks run-down. Exterior renovations can be completed in phases. Painting can dramatically improve the look of a building. In some cases, the exterior may have deteriorated too much for paint and new siding or repairs may be necessary.

balconiesYour multi-family construction project may involve a variety of other external renovations to improve its curbside appeal. One strategic multi-family construction approach is to focus on issues that people quickly notice. Replacing out-of-date fencing can considerably improve the appearance of the area. Your contractor can help evaluate the exterior of the property and recommend the multi-family construction projects that will make the most immediate difference. The contractor may recommend fixing shabby balconies, replacing gutters or replacing seriously damaged roofing.

Interior renovations are an important part of renovating out-of-date buildings. Old paint, shabby carpeting and old plumbing fixtures make the property much less attractive. A contractor experienced with unit upgrades can help you plan for the most important improvements. Often, contractors can recommend unit upgrade strategies that are both cost-effective and effective. Consider a contractor that offers unit make ready services. The contractor comes in and finishes the unit before showings or rentals so that it looks its best. This is especially helpful after a major multi-family construction project. The contractor will clean, remove dust, vacuum, polish and eliminate all signs of recent work so that the unit looks clean and brand new.

Five Upgrades That Will Increase Profit

Pool UpgradesHave an older community that needs some updates?  Focus on upgrades that will deliver in both rental rates and sales prices.  Make sure your enhancements are appropriate for your demographic, area, and property.  What will make the largest impact for your property and property location?

These five upgrades are proven to refresh a community and deliver a high return for the investment.

1)      Paint.  Nothing updates the look and feel of a community better than new paint.  Exterior paint sets the tone for the community and helps create a positive first impression on prospective residents.  Watch for exterior wood rot around roofs and garages.  Simple items like these will make a community feel worn and dated.

2)      Appliances.  Residents appreciate new appliances and will happily pay a premium to have them in the apartment home.  Consider replacing any dated appliances to increase the rental value of your community.

3)      Common Area Amenities.  Small changes can make a big impact with community amenities.  Adding a dog park, updating your BBQ pits, ensuring your pool is good upkeep (no stains or pool decking in disrepair), or updating landscaping can make a huge difference in the community without breaking the budget.

4)      Fixtures.  One of the most cost effective ways to update an apartment home.  Replace dated lighting, faucets, ceiling fans, towel bars, or electrical plates.  Nothing says dated like brass fixtures and rusty sink faucets.  These inexpensive enhancements will make leasing easier and allow for a higher rental rate. slide3

5)      Countertops.  Stained Linoleum Counters?  Time for a replacement!  Granite, granite, everywhere!  Communities have been replacing old, worn out counters with granite and receiving a high return rate.  Pick a neutral color that will accompany most of your demographics tastes and furniture.  Avoid trendy colors or counters that will date within a few years to increase sustainability.

Now is the time to take advantage of the market and increase the profitability of your property.  These basic enhancements will help to increase the market value of your apartment homes and purchase price if you decide to sell.  Upgrades will increase not only the overall value of your community but also increase tenant loyalty and happiness.